Rand Capital (NASDAQ:RAND – Get Free Report) and Blackrock Tcp Capital (NASDAQ:TCPC – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Profitability
This table compares Rand Capital and Blackrock Tcp Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rand Capital | -162.06% | 5.87% | 5.75% |
| Blackrock Tcp Capital | -66.92% | 14.30% | 5.47% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Rand Capital and Blackrock Tcp Capital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rand Capital | 1 | 0 | 0 | 0 | 1.00 |
| Blackrock Tcp Capital | 3 | 1 | 0 | 0 | 1.25 |
Dividends
Rand Capital pays an annual dividend of $1.16 per share and has a dividend yield of 11.4%. Blackrock Tcp Capital pays an annual dividend of $0.68 per share and has a dividend yield of 21.3%. Rand Capital pays out -37.4% of its earnings in the form of a dividend. Blackrock Tcp Capital pays out -45.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Blackrock Tcp Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Rand Capital has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500. Comparatively, Blackrock Tcp Capital has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.
Earnings & Valuation
This table compares Rand Capital and Blackrock Tcp Capital”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rand Capital | -$7.62 million | -3.97 | -$8.04 million | ($3.10) | -3.28 |
| Blackrock Tcp Capital | $201.79 million | 1.33 | -$88.93 million | ($1.49) | -2.14 |
Rand Capital has higher earnings, but lower revenue than Blackrock Tcp Capital. Rand Capital is trading at a lower price-to-earnings ratio than Blackrock Tcp Capital, indicating that it is currently the more affordable of the two stocks.
Summary
Blackrock Tcp Capital beats Rand Capital on 11 of the 13 factors compared between the two stocks.
About Rand Capital
Rand Capital Corporation is a business development company specializing in subordinated debt with warrants or preferred equity and venture capital investments. Within private equity, the firm specializing in capital growth and lower middle market investments. Within venture capital, it specializing in early to late-stage private businesses. It does not prefer to invest in real estate sector. It prefers to invest in software, professional services, manufacturing, consumer, healthcare, automotive and public d stocks. It prefers to invest in East or Midwest U.S. operations sectors. It typically invests between $0.75 million and $5 million with initial target size of $1.5 million. It seeks to invest in companies having more than $2 million in revenue or having excess of $1.5 million and up to $5 million in EBITDA. It prefers to be a minority stake and seeks to take a Board seat in its portfolio companies. It typically holds its investments for a period up to five years.
About Blackrock Tcp Capital
BlackRock TCP Capital Corp. is a business development company specializing in direct equity and debt investments in middle-market, small businesses, debt securities, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. It typically invests in communication services, public relations services, television, wireless telecommunication services, apparel, textile mills, restaurants, retailing, energy, oil and gas extraction, Patent owners and Lessors, Federal and Federally- Sponsored Credit agencies, insurance, hospital and healthcare centers, Biotechnology, engineering services, heavy electrical equipment, tax accounting, scientific and related consulting services, charter freight air transportation, Information technology consulting, application hosting services, software diagram and design, computer aided design, communication equipment, electronics manufacturing equipment, computer components, chemicals. It seeks to invest in the United States. The fund typically invests between $10 million and $35 million in companies with enterprise values between $100 million and $1500 million including complex situations. It prefers to make equity investments in companies for an ownership stake.
Receive News & Ratings for Rand Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rand Capital and related companies with MarketBeat.com's FREE daily email newsletter.
